Government remains undecided on the proposed fuel price hike of petrol, diesel, kerosene and

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cooking gas. A meeting between petroleum minister, Murli Deora and finance minister, Pranab Mukherjee, on Sunday didn’t arrive at any conclusion for an increase in fuel prices or releasing subsidy to the state-run oil marketing companies.

“No decision is taken until now. Once any decision is taken, we will let you know,” Deora told reporter after the meeting in New Delhi.

The meeting was about under recoveries of oil marketing companies (OMCs) and the Kirit Parikh report. No decision has been taken, said petroleum secretary S Sundareshan.

When asked if the next cabinet meeting will consider fuel price hike, Deora said, “No body knows.”

The UPA government has set the ball rolling with Congress leadership consulting the main partners on the proposed hike in prices of petroleum products. But its allies, DMK and Trinamool Congress, are against any increase in prices. Centre is already under attack from opposition parties over high food prices.

Country’s state-run OMCs are bleeding because of selling products below market price. At present, petrol is sold at a loss of Rs 4.72 a litre, diesel at Rs 2.33 per litre, kerosene at Rs 18.06 per litre and domestic LPG at a discount of Rs 287.59 per cylinder.

Deora wants government to compensate Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) nearly Rs 31,000 crore for losses incurred on selling LPG and kerosene below market price. However, finance minister has promised a subsidy of Rs 12,000 crore till now.

A high-level committee headed by former planning commission member, Kirit Parikh, has proposed deregulation of auto fuel prices and increase in LPG by Rs 100 per cylinder and kerosene by Rs 6. Prices of petrol and diesel prices, if decontrolled with immediate effect, would result in an increase of Rs 4.72 and Rs 2.33 a litre, respectively.